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That general rate increase is part of a 48.5% rise in the total rates take, included in the long-term plan 2021-31 approved at a full council meeting yesterday.
Councillors voted for total rates to rise 18% in the second year and a further 12% in the third.
Some councillors said the rates increase should be recognised as a pivotal moment for the council as it worked to "turn the ship around".
Corporate services general manager Nick Donnelly said adjustments were made to the plan following deliberation of public feedback.
A further amendment was made following the council’s announcement it had bought a new headquarters building.
Port Otago, which is 100% owned by the council, said last week it had bought the former Dunedin Warehouse site in Maclaggan St for $10.2million.
The plan initially included the assumption the council would move into a new headquarters building in year four of the plan.
Now, it included the same "transaction", simply moved forward a year, Mr Donnelly said.
Following the adoption of the long-term plan, the council was required to adopt a rates resolution, which sets the rates for the 2021-22 financial year.
The general rate requirement (GST inclusive) for the 2021-22 year was $22,514,000, which represented a 75.1% increase on the 2020-21 rate of $12,856,000, staff said.
Cr Bryan Scott started a series of speeches from councillors on the approval of the long-term plan, calling it a significant step forward for the council.
"I’m really pleased and excited about some of the things going on ... I’m aware that with this is a sense of responsibility," he said.
Cr Michael Deaker felt the plan was a reflection of the new strength the council had in terms of numbers, purpose and quality.
"I think this is a pivotal moment."
He credited the Otago community for not "revolting" over the rates rise, but rather accepting that more work needed to be done.
Cr Kevin Malcolm echoed their thoughts, calling the plan "a major leap".
"We only have one environment; we all need to commit to taking care of it."
Cr Kate Wilson said the council was just getting up to speed on where it should have been.
The council was not dealing with what the community wanted beyond that, she said.
"I’m not going to take a huge amount of happiness because we’re not far enough ahead in terms of climate change, transport or air."
Chairman Andrew Noone said the council made the right decision in regard to rates.
"I remember when Sarah [council chief executive Sarah Gardner] came on board and made an initial comment about turning this ship around."
Mrs Gardner and council staff had done a good job at doing that, he said.